The government is considering a broad range of incentives for
employers who create additional jobs, a senior government official told ET.
This is in line with Prime Minister Narendra Modi's commitment to create more jobs. A high-level panel of secretaries recently proposed fiscal and monetary incentives for consideration in the budget, the key one being a 30% income tax exemption for units that create an additional 2% jobs, the official said. The base for calculation is proposed to be total emoluments and will cover all kinds of employees.
the hirer could be given a 125% rebate on provident fund contributions.
Another incentive would be easy, cheap credit through interest subvention. The PM had referred to this in his Independence Day speech last year.